The transaction supports the project’s maturation towards the final investment decision (FID), expected in early 2027, subject to market conditions, regulatory approvals and the companies’ internal decision processes.
“The transaction provides Shell with an attractive entry point, with expected returns above our hurdle rate, and exposure to an established resource base with potential longer-term growth, consistent with our disciplined approach to building a competitive portfolio,” Shell reported.
According to Shell, as the project remains pre-FID, any future investment decision will be subject to the company’s investment criteria and will need to compete for capital within its portfolio.
The project concept is a phased subsea development tied back to a floating production, storage and offloading vessel (FPSO), with gross production capacity planned to be 160-175 kboe/d and estimated recoverable resources in the initial phase including more than 400 million barrels of oil.
Bay du Nord is currently finalizing the front-end engineering and design (FEED), with continued work focused on strengthening capital efficiency, execution planning, and overall project robustness, Equinor said.
With a planned investment of around CAD$14 billion ($9.87 billion), first oil is anticipated in 2031.
“We are pleased to welcome Shell as a partner in Bay du Nord. This is a strategic project for Equinor, with a high-quality resource base and the potential to create significant long-term value. Shell’s entry strengthens the project as we continue to mature it towards a final investment decision,” said Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor.
